Question

Production function explains the relationship between _________ and _______.

• A. initial inputs, ultimate output
• B. inputs, ultimate consumption
• C. output, consumption
• D. output, exports

Answer 1

Answer: (A)

initial inputs, ultimate output

The arguments of a production function are the inputs required for production to take place and the outputs this generates. The most common form of the production function is the Cobb-Douglas function.